Source: BusinessNZ
New insights from the World Energy Council show New Zealand’s energy sector is entering a more complex and constrained phase, with supply and demand now emerging as the country’s top energy concern.
The World Energy Issues Monitor is a global snapshot of the key challenges and uncertainties shaping the energy sector. The 2026 report highlights a significant shift from last year, with affordability no longer the primary uncertainty. Instead, pressure is building around declining domestic gas supply, rising electricity demand, and the challenge of delivering new infrastructure at pace.
BusinessNZ Energy Council Policy Advisor Ben Young says the latest NZ-specific findings (which accompany the report) reflect a system under transition – and under increasing pressure.
“Affordability uncertainty, while still being a clear priority, has improved off the back of actions from industry and government, the bigger issue now is the growing supply & demand imbalances in the system.
“New Zealand’s domestic gas production has fallen sharply in recent years and is expected to decline further, while electricity demand is set to rise due further to electrification, industrial use, and data centres. At the same time, infrastructure planning has re-emerged as a major uncertainty in the survey.”
The report also highlights growing concern around economic security, as New Zealand becomes increasingly reliant on imported fuels to support its energy system, something Young says is placing renewed pressure on the 'energy trilemma' (balancing security, affordability, and sustainability).
“Trade-offs are now emerging. Ensuring security of supply particularly in dry years may require greater reliance on imported fuels, which has implications for both cost and our emissions.
“On the bright side, the report signals toward reduced uncertainty for affordability, alongside significant investment in new generation and innovation in areas such as geothermal and emerging technologies.
Young says the energy system is changing rapidly. “What this report shows is a growing awareness of the challenges ahead, and the need for coordinated, long-term action to manage them.”
The 2026 Issues Monitor is available to read now. The accompanying New Zealand Country Commentary can be found here: https://www.worldenergy.org/world-energy-community/members/entry/new-zealand
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